DOE Closely Monitors LPG Pricing to Address Overpricing Concerns

5 JULY 2013

(Taguig City) The Department of Energy (DOE) assures the public of its continued close monitoring of the prices of Liquefied Petroleum Gas (LPG) to ensure that the adjustments are fair and reasonable.

Per monitoring of the DOE, LPG prices have decreased six times totaling to around P9/kg since January as opposed to only one increase this month of P2.50/kg. 

Under Republic Act No. 8479, otherwise known as the Oil Deregulation Law, the pricing of petroleum products is left with the LPG companies with the DOE determining the reasonableness of the price computation based on submitted information. The DOE computation of petroleum product prices only serves as a guide estimate of the prevailing prices of the commodity in a deregulated oil market.

In support of its price monitoring mandate, oil companies are required to inform the DOE of their price adjustment six hours before their implementation. In addition, the DOE regularly sends out field inspectors to monitor the price movements of LPG in the market to ascertain that they are implementing their declared prices.

For reports or complaints about pricing abuses, consumers can all call tel. no. (02)840-2130/(02) 840-2267 or directly file their complaints to the DOE. To support the complaints, consumers are reminded to keep their purchase receipts. Retailers or distributors which are proven to have overpriced customers of its LPG products may be subject to a fine of up to P500,000.00.